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Investors in the electric car maker gathered this Thursday to vote on a massive pay deal for CEO Elon Musk valued at around $1 trillion. Should it pass, this plan would demonstrate market faith that the tech magnate can steer the vehicle manufacturer into an age dominated by AI technology and automation. If denied, Tesla could confront the loss of a key figure who historically built the company name equivalent with EVs.

Historic Milestones and Market Capitalization

Should Musk achieve the formidable milestones outlined in the pay package revealed at Tesla's shareholder gathering, he could become the first-ever person with a trillion-dollar net worth. To reach this goal, he must steer Tesla to a staggering $8.5 trillion in company worth, which is an eightfold increase its current valuation. Moreover, he will be obligated to roll out countless driverless automobiles and bipedal machines, while maintaining the company's bottom line in the hundreds of billions of dollars throughout the coming ten years.

Payment Breakdown

The key aims of the pay package, divided into a dozen phases, delineate a path for Tesla to reach its colossal worth. Should targets be met, Musk would be able to benefit from an additional 12% of the company's stock. For this to occur, he must remain vested with the company for a minimum of 7.5 years. Furthermore, he is required to assist in creating a long-term succession plan for the organization he has managed for more than 20 years. The share grants offered by the latest pay package, alongside shares assured in his earlier deal, would result in Musk with a quarter stake of Tesla's stock. As of early November, Tesla equity was priced near its 52-week high, at approximately $450 each share.

Formidable Objectives

Throughout a decade, Musk will be tasked to deliver 20 million electric vehicles to buyers, market 10 million live FSD memberships, develop and sell 1 million advanced androids, and launch 1 million robotaxis in paid operations.

Musk will furthermore be tasked to increase the company to $400 billion in tangible revenue for a full year. Tesla's tangible revenue for the Q3 2025 were $4.2 billion, 9 percent lower from the previous year.

In November, Musk's net worth was pegged at $460 billion, the leading in the world, based on financial data.

Reinstating a Invalidated Deal

Investors are furthermore reviewing a plan that would compensate Musk after his previous pay package was voided by a legal authority in Delaware. The pay plan, worth an estimated $56 billion, was contested by a sole shareholder who succeeded legally. The Delaware court of chancery rejected Musk's compensation plan twice. Should investors pass the arrangement in the Thursday ballot, Musk is likely to be awarded the massive amount irrespective of whether Tesla and Musk overturn the ruling of the case.

Subsequent to Musk's previous compensation plan was initially invalidated, he relocated Tesla's corporate home from Delaware to Texas. He did the same with SpaceX and other business entities. In 2024, under Texas law, shareholders for a second time approved the remuneration deal.

But Delaware's so-called "court of equity" once again rejected one of the most substantial CEO pay deals in recent times. After that adverse judgment, Musk posted on his accounts to voice displeasure with the state and its "influential presiding justice", possibly fueling a series of corporate exits that Delaware legislators have sought to curb with legislation.

In evaluating whether Musk had excessive control in being given that earlier remuneration deal, a respected legal scholar remarked that the court acknowledged that other "celebrity leaders" like the Meta chief and the e-commerce pioneer were not given this sort of incentive-based contracts.